bloggingbuyouts

According to Business Week, Ford (NYSE: F) brands Jaguar and Land Rover have captured the interest of Indian private conglomerate Tata Group, owners of Tata Motors (NYSE: TTM). India's largest car manufacturer is reported considering a bid for the legendary British brands, hoping to market them internationally and reduce its dependence on domestic sales. The well-heeled Tata Group includes Tata Steel, the world's fifth largest steel company, which recently concluded a $12 billion takeover of Britian's Corus Steel.


Tata Group owns 96 companies, employs over two million people and has a market cap of over $50 billion. Tata Motors has been building cars since 1945, with revenues of $5.5 billion in 2006. In 2004, it acquired Daewoo Commercial Vehicle Company, and owns a stake in Spanish bus manufacturer Hispano Carrocera. The company has stated its intent to bring to market a $2,500 car to emerging markets by next year.

Buying Jaguar and Land Rover would do more for Tata than give it international access; it could lend the company the credibility to gain immediate acceptance in the burgeoning vehicle market worldwide.

Back in March, Vertrue (NASDAQ: VTRU), which focuses on direct marketing services, announced a going-private transaction at $48.50 per share. The buyers included the company's management, One Equity Partners, Oak Investment Partners and Rho Ventures.

Well, it hasn't been a cake walk. You see, some investors thought the price was too low – and complained about it. Basically, Vertrue is truly a good business. Last year, revenues hit $659 million and EBITDA was $89.8 million.

No doubt, Vertrue tried to defend the price tag – but has now finally given up. Now, the price tag is $50 per share.

Doesn't seem like a lot? But, according to Brencourt Advisors – with a 28.1% stake – it's enough. And that's all that matters. What's more, the investment firm will have the option to buy a $25 million stake in the private company, which is known as an "equity stub."

Interestingly enough, the deal was too rich for Oak Investment Partners, which walked from the transaction.

To see other M&A transactions, click here.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Vertrue Inc. (NASDAQ: VTRU), which operates the popular dating site LavaLife, is hooking-up with private equity firms for a $800 million buyout. The suitors include One Equity Partners, Oak Investment Partners and Rho Ventures. Some members of the management team are also participating in the purchase.

Vertrue expects to generate revenues annual revenues of $748 to $758 million. The EBITDA forecast is for $93.1 to $90.9 million.

In other words, the valuation on this deal is about 8.6X EBITDA. Compared to other multiples in the Net sector, this certainly looks like a pretty good deal.

There was very little premium on the buyout as the stock price increased only $0.56 to $48.14. Then again, the stock has surged more than 20% since January because of buyout rumors.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.